Investors say these 38 fintechs are the next generation of breakout B2B stars, following in the footsteps of Plaid and StripeAugust 31, 2020
- We asked some of the top fintech investors to recommend up-and-coming fintechs that cater directly to businesses.
- Investors could nominate their own portfolio companies, as well as fintechs they haven't backed, with the caveat that nominees couldn't have raised beyond a Series B round of funding.
- While responses were wide-ranging, a central theme was automation, with a focus on fintechs that help businesses streamline processes like data management and payments.
- Here are the 38 up-and-coming B2B fintechs investors are watching.
- Visit Business Insider's homepage for more stories.
When it comes to early-stage investing, any investor will tell you that there's more risk. That said, there's also more reward for backers willing to bet on a young company.
And while direct-to-consumer startups like Robinhood and Chime often draw much of the attention in the fintech ecosystem, startups that deal directly with businesses have enjoyed some significant success recently.
Look no further than Plaid, which is in the process of being acquired by Visa for $5.3 billion, or Stripe, whose latest funding round put it just shy of a $36 billion valuation.
Read more: Here's how 44 insiders at powerful banks, buzzy startups, and big investors are thinking about financial innovation — and why the term 'fintech' may be on its last legs
Fintechs investors, it appears, have noticed. Business Insider asked 27 of the top fintech investors to pitch us on up-and-coming fintechs. It's worth noting more than 63% of the submissions were startups that cater to businesses, not consumers.
While investors could nominate both their own portfolio companies and those they haven't invested in, we set a fundraising limit of no startups that had moved beyond a Series B raise.
Investors' picks varied, but a major theme was automation — fintechs that help other companies streamline things like data management, expense tracking, and payments.
Here are the 38 up-and-coming B2B fintechs to watch.
See more: 22 fintechs that VCs and big investors say are on the brink of becoming household names
Cited by: Bessemer Venture Partners (investor), Insight Partners, Index Ventures
Total raised: $19 million
What it does: Alloy streamlines the process of onboarding and managing clients for financial firms, helping companies collect customer data from various sources. The New York-based startup helps firms with identification and compliance concerns.
Why it's hot in 2020: "As digital transactions continue to increase, so does the rate of financial fraud, thus companies must walk a tightrope between maintaining robust compliance methods and offering a low-friction customer experience; Alloy does exactly this," said Brad Fiedler, investment associate, and Teddie Wardi, managing director at Insight Partners. "Their client base grew by more than 800% in 2019 and their team has been scaling nicely since then."
"Banks and fintechs need help understanding the identity of their customers, and Alloy has built a platform that makes it easy to do so. We're not investors but are big fans of the team and the market opportunity," said Mark Goldberg, partner at Index Ventures.
"Alloy is growing quickly, having differentiated in a crowded market of data vendors and software providers by taking a developer-first approach and positioning themselves as a key partner to the top legacy and emerging vendors in the industry and as an orchestration layer that sits above them all." said Charles Birnbaum, a partner at Bessemer Venture Partners.
Cited by: Clocktower Ventures
Total raised: $8.5 million
What it does: Altruist helps financial advisors improve on the customer experience they provide. The California-based startup offers cutting-edge tools to RIAs that allow them to operate more efficiently.
Why it's hot in 2020: "This is the first time we see a platform that focuses on allowing financial advisors to provide the same all-around top-notch experience that has been so far reserved only to D2C roboadvisors or self-directed neo brokerage apps — RIAs can now operate more efficiently and delightfully with frictionless onboarding and account opening, a UX first design, and commission-free trading," Adriana Saman, associate at Clocktower Ventures, said.
Cited by: QED Investors
Total raised: $18 million
What it does: Bambee, a Los Angeles-based startup, offers human-resource managers for small businesses starting at $99 a month. After setting up policies, the manager continues to work with the company to insure they are maintained and managed correctly.
Why it's hot in 2020: "96% of small businesses do not have an HR manager and Bambee is seeking to fill that gap. The extraordinary team, led by CEO Allan Jones, is providing full HR-in-a-box solutions to companies that would otherwise have no dedicated HR, reducing risk, anxiety and inefficiency and allowing SMBs to focus on their businesses," QED Investors cofounder and managing partner Nigel Morris said.
Cited by: Centana Growth Partners (investor)
Total raised: $41 million
What it does: The New York-based startup caters to developers at financial firms looking to improve on the speed at which they are able to build out new solutions or tools. Thanks to their use of the cloud, Beacon helps users improve their efficiency around how they develop and deploy new tech.
Why it's hot in 2020: "Beacon's founders are innately innovative. They've built similar technology at Goldman Sachs, JPMorgan, and Merrill Lynch, and this time they are building this technology on the cloud. Their vision has always been to make modern, efficient capital markets software available to a broad range of clients in addition to the biggest banks," said Eric Byunn, cofounder and partner at Centana Growth Partners.
Cited by: Commerce Ventures (investor)
Total raised: Declined to disclose
What it does: BillGO aims to update how bill payments are processed. The Colorado-based startup's bill payments engine includes real-time payments and advanced capabilities for customers.
Why it's hot in 2020: "Bank-based online bill pay hasn't changed much in a decade, which has enabled billers to persuade more and more consumers to store their payment credentials directly on biller sites. This makes it harder for consumers to track all of their bills and expenses in one place, and thus keep on top of their finances. BillGO enables banking and personal finance players to once again centralize bill payment for consumers as well as, for the first time, deliver broad, and rich access to digital bill presentment. This will shake up the $4 trillion bill pay industry in the next 12 to 24 months," said Dan Rosen, general partner at Commerce Ventures.
Cited by: Kleiner Perkins (investor)
Total raised: $30.75 million
What it does: Bison Trails is a New York-based fintech focused on helping companies manage infrastructures built across multiple blockchains. The startup includes coverage of over 24 different blockchain protocols.
Why it's hot in 2020: "Bison Trails is democratizing access to blockchain infrastructure, akin to what AWS did for storage and compute. They currently support more than 20 protocols and often work closely with the builders, developers and investors to ensure these protocols launch smoothly. That infrastructure will be key to the next wave of blockchain innovation, serving as a developer tool and distribution building block," said Monica Desai Weiss, an investor at Kleiner Perkins.
Cited by: Index Ventures (investor)
Total raised: $55 million
What it does: A provider of construction finance technology, Built ensures efficient flow of money between all parties of a project. The Nashville-based startup offers updates in real-time to mitigate risk and speed up the process.
Why it's hot in 2020: "Every year, banks lend trillions of dollars to builders to fuel the construction market. But most banks still rely on spreadsheets and paper to manage payouts — leading to project delays and additional costs," Index Ventures' Goldberg said. "Built is creating a new category of software to bring this market into the 21st Century. Based in Nashville, it's one of the fastest-growing (and least well known) companies in our early stage portfolio."
Cited by: Insight Partners (investor)
Total raised: $380 million
What it does: Checkout.com is an API-based payments startup that enables merchants to accept electronic payments from around the world through one integration.
Why it's hot in 2020: "It's been a busy year for Guillaume and his team — from May 2019 to May 2020, transactions increased by 250% and the business added 500 new employees. Riding their recent momentum, the team raised a Series B at a $5.5B valuation in June, which is up 3x from their first institutional round just one year ago and makes it one of the highest valued (yet still not a household name!) fintechs in Europe. The Checkout platform has a unique global presence with footprints on every continent, a growing set of proprietary value-add services, and a long list of innovations to come. Perhaps most impressive in an age of high-burn startups, the business has been profitable since its founding in 2012," said Deven Parekh, managing director at Insight Partners.
Cited by: DCM (investor)
Total raised: Declined to disclose
What it does: Cherry is a point-of-sale financing startup that enables merchants to offer flexible payment plans to their customers.
Why it's hot in 2020: "Think 'Affirm for offline businesses.' Particularly in the current recession, customers value payment flexibility and most local businesses are hurting for customers. Auto repair shops, for example, is a category Cherry serves, and they've been growing rapidly through Covid-19," Kyle Lui, partner at DCM, said.
Read more: Buy now, pay later startups are surging. But Affirm CEO Max Levchin says the industry will see a shakeout as the pandemic hits borrowers.
Cited by: Point72 Ventures
Total raised: $19.6 million
What it does: Codat looks to improve the flow of data between small businesses and the banks and fintechs they're working with. The London-based startup allows companies to avoid exchanging information regarding accounting or payments via email, instead offering a more fluid channel for the two sides to connect.
Why it's hot in 2020: "Business financial data is siloed across different software platforms. As a result, delivery of business-facing financial services is slow and full of manual processes. Codat has the opportunity to become the central hub for all business data — accounting, banking and commerce — and improve the delivery of financial services to small businesses." said Tripp Shriner, a partner at Point72 Ventures.
Cited by: Pivot Investment Partners
Total raised: $35 million, according to Crunchbase
What it does: CyberCube works with insurance companies to help them better understand their cyber risk. Its risk analytics and modeling help to determine the financial impact of a cyberattack.
Why it's hot in 2020: "CyberCube is poised to benefit by operating at the intersection of two powerful forces: A) Cyber has become the fastest growing line of insurance to emerge in decades, yet, most firms still lack the data and analytic tools to effectively participate in this market. B) Companies are increasingly vulnerable and stand to lose billions in value from amorphous cyber-crimes," said Atit Amin, fintech investor at Pivot Investment Partners.
Cited by: Sapphire Ventures, Sequoia Capital
Total raised: $32.5 million, according to Crunchbase
What it does: Digits is an expense management platform for small businesses.
Why it's hot in 2020: "This is another early-stage company that's disrupting the financial sector. Companies have to apply for access, so it's pretty stealthy. In fact, they're still in stealth mode. Digits plays in the expense-management space. Digits' tech sits top of a company's existing accounting package, connects with existing financial institutions, and amplifies and reinforces accountants' work," said David Hartwig, managing director at Sapphire Ventures.
"Digits is solving an important problem for companies: real-time cash management. The founders Jeff and Wayne are excellent product thinkers, and their technology is lightening the load on finance teams," said Shaun Maguire, partner at Sequoia Capital.
Cited by: Point72 Ventures (investor)
Total raised: $54.3 million
What it does: DriveWealth enables companies to offer investing products without having to worry about managing an entire brokerage operation. The New Jersey-based startup has also helped foster the rise of fractionalized trading via a tool known as "the fracker."
Why it's hot in 2020: "They enable anyone from large technology companies (Square) to smaller banks provide trading and digital wealth experiences. With a set of APIs, anyone can launch a product like Robinhood or Betterment. We're seeing that financial-services providers need to offer a full suite of products to their customers, and we believe DriveWealth is the best way to offer new investment experiences," Point72 Ventures' Shriner said.
Read more: Robinhood, Fidelity, and Charles Schwab are racing to give customers the chance to buy $1 slices of stocks. We talked to a dozen insiders about who wins, who loses, and what it says about trading today.
Cited by: Pivot Investment Partners (investor)
Total raised: $19.4 million
What it does: This New York startup offers data analytics for financial firms, consumer brands and consultants. Earnest Research analyzes and processes transactional data to give a sense of customer trends and behaviors.
Why it's hot in 2020: "As the amount of stored electronic data grows exponentially, extracting value from that information will provide the means to which firms stay relevant. Working with data partners, Earnest creates consumer and market research analytic products derived from the aggregated and anonymized transactional data of millions of US consumers. Leading buy-side firms and Fortune 100 corporates deploy its software to gain a deeper understanding into the KPIs impacting performance at public and private companies, as well as the secular shifts in consumer behavior that drive the US economy," Pivot Investment Partners' Amin said.
Cited by: Jump Capital (investor)
Total raised: $18.5 million, according to Crunchbase
What it does: This Austin, Texas-based startup offers trade-surveillance and risk-management software. Eventus offers a holistic view to customers, covering trading, operations, compliance, and risk management.
Why it's hot in 2020: "Rising trading volumes have only increased market and regulatory risk for financial market participants who are already spending $1 billion per year on trade surveillance technology. Eventus' market-leading solution has enabled the company to become a default choice for large established firms seeking a better surveillance and risk solution, and the dominant player in rapidly growing crypto trade surveillance market," Peter Johnson, principal at Jump Capital, told Business Insider.
Cited by: Citi Ventures (investor)
Total raised: $22.9 million
What it does: Fidel offers an API for businesses to access real-time card payment data.
Why it's hot in 2020: "During the last decade we have seen tremendous value generated by startups that create a connectivity layer on top of disparate legacy systems. Improving and creating the digital 'plumbing' has produced tremendous outcomes for companies such as Plaid, Stripe and Twilio. By making the underlying payments infrastructure more accessible, Fidel empowers developers to build applications and services that drive value back to the end user. A user's payment card holds a huge amount of information that once unlocked can produce a new wave of innovation that benefits the users," said Luis Valdich, managing director at Citi Ventures.
Cited by: Insight Partners (investor)
Total raised: $96 million
What it does: Finix is a provider of payments infrastructure for companies that want to embed and manage payments in-house, as opposed to relying on a third party.
Why it's hot in 2020: "The company's explosive growth started in 2019 when they began processing billions of dollars worth of payments for dozens of customers including Kabbage, Lightspeed POS, and Passport — a 20x growth in payments volume. Over the past 12 months, Finix has raised capital from firms including Insight, Sequoia, Bain, and Visa, added former Secretary of Commerce Penny Pritzker to its board, and recently launched a new product — Flex — to make their product accessible to smaller platforms," said Rebecca Liu-Doyle, vice president at Insight Partners.
Read more: Here's the 20-slide pitch deck Finix used to sell its vision of payments-as-a-service and nab $30 million from backers including Amex's VC arm
Cited by: Sapphire Ventures
Total raised: $2.9 million
What it does: Glean is software for businesses to manage their vendor spend.
Why it's hot in 2020: "This very early-stage, business-oriented fintech startup was founded by 2x CFO Howard Katzenberg. Howard was the CFO of Better.com and OnDeck, which was a Sapphire Ventures investment prior to going public. Glean goes after a problem that Howard noticed during his time at Better.com and OnDeck, namely that managing spend, even within a small business, is like playing wack-a-mole, which takes a lot of energy and doesn't use a lot of intelligence. Glean's technology enables SMBs to lower vendor costs by analyzing core drivers of spend and finding non-intuitive insights — all with the power of machine learning," said David Hartwig, managing director at Sapphire Ventures.
Cited by: Insight Partners (investor)
Total raised: $29 million
What it does: Glia is a digital communications startup that offers its clients – banks, credit unions, and insurance companies – a customer service platform with messaging, video chat, phone calls, and AI, all consolidated into a single system.
Why it's hot in 2020: "Everyone at some point has experienced the frustration of speaking with an agent at a traditional call center — enduring long wait times and a battery of security questions before finally reaching an agent, only to be transferred to a different agent who has no context around what the customer was doing on the web or mobile and what they've already explained to other agents. By allowing interactions to switch seamlessly between various channels, and allowing the agents to help customers navigate through web and mobile experiences (e.g. applying for a mortgage) in real-time, Glia reduces average handle times while improving both the end-to-end customer and agent experiences," said Lonne Jaffe, managing director at Insight Partners.
Global Data Consortium
Cited by: Edison Partners
Total raised: $3.5 million
What it does: Global Data Consortium functions as a singular touchpoint for businesses looking to verify the identity of customers across the globe. Based in North Carolina, GDC offers verification capabilities in over 50 countries.
Why it's hot in 2020: "I am excited about Global Data Consortium in the digital identity and compliance space. Big fan of the founding team and what they've built so far with their global identity verification platform, with a unique, international data play; and they just announced a partnership with Experian. Definitely one to watch, especially given how identity market continues to be of a significant focus and growth in this time of accelerated digitization." said Jennifer Lee, principal at Edison Partners.
Cited by: Oak HC/FT (investor)
Total raised: $32 million
What it does: Groundspeed Analytics focuses on helping insurance carriers and brokers organize and analyze their data, the vast majority of which traditionally went unused. Customers are able to improve on margins and customer experience by accessing the unstructured data via the Ann Arbor, Mich.-based startup.
Why it's hot in 2020: "Most innovation relies on having access to quality structured data as a starting point. This data allows innovators to run analytics and use AI/ML to change how products are priced, serviced and delivered. However, today that data is not organized or standardized in a format that brokers or carriers can actually use and benefit from," said Tricia Kemp, cofounder and managing partner at Oak HC/FT.
"[Groundspeed] has many of the top brokers and carriers as customers and have already positioned themselves as the leader in data structuring and friction-less analytics for the industry," she added.
Investor Cash Management (ICM)
Cited by: Visa Ventures
Total raised: $6 million
What it does: ICM partners with asset and wealth managers to offer cash management investment vehicles to consumers. Through ICM's accounts, consumers get access to government money market funds, ETFs, and other high-yield products.
Why it's hot in 2020: "ICM leadership is passionate about promoting financial inclusion: ICM converts individuals into investors, and then enables them to earn ~10x higher returns on their liquid assets and savings. ICM is seeing strong demand for its cash management account (CMA) product. ICM clients include trillion-dollar asset managers such as Invesco and leading wealth management firms such as Cabana. ICM has also launched programs in India with affiliates of large foreign banks. Furthermore, ICM is now working with large community organizations to promote savings and reduce the racial/gender investment and wealth gaps," said Kevin Jacques, VP of Visa Ventures
Cited by: Point72 Ventures (investor)
Total raised: $22.3 million, according to Crunchbase
What it does: New York-based Mantl aims to improve how banks and credit unions open up accounts for customers. The startup's solution can embed with a customer's older tech stack, meaning an entire overhaul isn't required to improve the client experience.
Why it's hot in 2020: "They're a consumer and business account opening that helps banks and credit unions provide their users with a modern experience without having to change their underlying core infrastructure. We like this name because A) They enable the country's smaller financial institutions to compete with the big guys and fintechs on digital experience. B) Covid has highlighted how critical account opening is," Point72 Ventures' Shriner said.
Read more: Investors at Point72 and Goldman Sachs believe industry giants like FIS and Fiserv will be the next to be disrupted by fintech. Here's where they are most susceptible.
Cited by: Activant Capital
Total raised: $10 million
What it does: Modern Treasury is an API-based payments operations system. It helps companies automate things like sending payments and reconciling money movement.
Why it's hot in 2020: "They're automating the treasury function within companies, which can be very expensive from an opex perspective — Goldman estimates that the global costs associated with accounts payable (AP) is ~$2.7 trillion. In the US alone ~$187 billion is spent annually on the direct processing and labor costs and ~$510 billion if you include indirect costs like working capital and cross-border fees. We've seen the opportunity across our portfolio and as the ACH payment rails shift closer to real-time payments massive opportunities exist to embed payments automation into the workflows of large organizations," Steve Sarracino, founder and partner at Activant Capital, said.
Cited by: Activant Capital, Kleiner Perkins, and Bain Capital Ventures (investor)
Total raised: $5 million
What it does: Moov allows users to create banking and payment functionality in their app seamlessly. From client onboarding to money transfers, the startup covers a variety of banking services.
Why it's hot in 2020: "Moov.io is bringing the open-source movement to fintech, which could serve as a huge unlock for the next wave of builders. They're navigating both sides of typically complicated negotiations, allowing fintechs to work with traditional financial services and data providers with a new level of ease and implementation velocity," Kleiner Perkins' Desai Weiss said.
"Over the next five to 10 years we expect to see substantial advancements in the infrastructure layer for banking and financial services. nCino's IPO listing was a great example of this wave picking up steam and the legacy incumbents like Fiserv and FIS (with a combined market cap of $150 billion) are ripe for disruption. One company we're following is Moov, an early-stage banking-as-a-service startup that works in the cloud or on-prem and offers a suite of services from account creation through bill pay, KYC, wire transfers and more," said Activant's Steve Sarracino.
"Moov.io is a developer-first, open source banking-as-a-service offering that enables banks, fintechs, and technology companies to seamlessly embed financial services into their product suites," said Matt Harris, a partner at Bain Capital Ventures.
Cited by: Two Sigma Ventures
Total raised: $12.75 million
What it does: The New York startup allows e-commerce sites to embed warranties seamlessly in their platform at the point of sale. In doing so, merchants can tap into additional revenue and increase customer loyality.
Why it's hot in 2020: "It can be difficult to identify a solution that addresses pain points across different stakeholders in a mutually beneficial way, but that's exactly what Mulberry has managed to do with its platform. They are helping retailers quickly and easily launch warranty programs (that also generate revenue), while also improving customer experiences with simple, low-cost warranty options at the point of sale. It's a true win-win for merchants and their customers. They have identified a niche space that has been overlooked that is ripe for disruption and have a solution that can be scaled globally," said Colin Beirne, partner at Two Sigma Ventures.
Cited by: Jump Capital
Total raised: $9.7 million
What it does: This Montana-based startup offers insight into the behavior of financial firms' customers. As a result, Neuro-ID helps firms lower the chances of fraud and improves the client-onboarding experience.
Why it's hot in 2020: "As financial institutions rush to onboard new customers, they are struggling to balance the desire to increase conversion rates by reducing friction with the need to manage risk and fraud. Neuro-ID's solution is empowering leading online lenders, payment processors, and insurance companies to personalize and enhance the digital customer journey in ways that smartly increases conversion rates," Jump Capital's Peter Johnson said.
Cited by: Kleiner Perkins (investors)
Total raised: $70 million
What it does: Nova Credit helps immigrants get approved for financial products in the US despite their lack of credit history in the US. The startup works with international credit bureaus to develop a US credit rating.
Why it's hot in 2020: "Nova Credit was built around a recurring pain point in a globalized economy — when you move, your credit doesn't move with you. They've done the incredibly operationally-intensive work to change that, and to unlock financial products like credit cards, auto loans and even cell phone plans to immigrants. With that mission, Nova Credit is leading the way in thinking about alternative data sources as we expand access in this next wave of fintech," Kleiner Perkins' Desai Weiss said.
Read more: American Express is adding cross-border credit checks from startup Nova Credit — giving it an in with potential card customers that used to be tough to approve
Cited by: Oak HC/FT (investor)
Total raised: $33 million
What it does: This New York-based startup uses artificial intelligence to automate the analysis of documents such as bank statements, IDs, tax forms, and invoices. Operating at more than 99% accuracy, Ocrulus can speed of back-office processes that were previously highly manual.
Why it's hot in 2020: "The company is also incredibly nimble and after the CARES act was announced, quickly created a tailored product to help banks process the applications faster and get these key funds in the hands of small business," Oak HC/FT's Kemp said.
"They have ubiquitous market share with online lenders, providing mission critical analysis on top of their data and are moving quickly into other verticals," she added.
Read more: Fintechs working with lenders and small businesses explain the pain points still plaguing the latest $320 billion round of PPP loans
Cited by: Oak HC/FT
Total raised: $17 million
What it does: Privacy.com gives users additional security when making payments online with the ability to control how their card is used. Customers can create single-use cards or put spend limits on cards to limit fraud and provide increased protection.
Why it's hot in 2020: "Privacy has built all-in-one platform enabling technology providers to issue virtual cards all through an API, in a secure, user-controlled manner on top of almost any platform. In the past there needed to be 5+ separate agreements and negotiations to issue a card that can make payments in a virtual online transaction," Oak HC/FT's Kemp said.
"The use cases span from using a different card for any transaction, setting spend amount or type limits, and will evolve to enable technology companies to build countless financial use cases and products on top and putting the control of the transaction, data, and privacy back into the hands of the consumer," she added.
Cited by: Visa Ventures (investor)
Total raised: $14.4 million
What it does: Railsbank is a banking-as-a-service offering. It provides APIs to fintechs and financial institutions who want to deliver digital banking and financial services to their own end customers.
Why it's hot in 2020: "Despite COVID-19 impacting businesses around the world, Railsbank is growing at an exceptional rate, more than 350% per year as there is actually heightened demand to enable modern digital-banking experiences. Railsbank just announced their expansion into North America last week and the launch of their enabling 'credit-as-a-service' offering. The credit-as-a-service offering is relatively unique. Only a handful of companies can do this in North America today, and it will allow clients to launch some exciting new products," said Kevin Jacques, vice president of Visa Ventures.
Cited by: DCM
Total raised: $25 million
What it does: Ramp is a corporate card with automated savings features and cash back.
Why it's hot in 2020: "[Ramp is a] real challenger to Brex in the corporate card space, but focused on larger growth-stage companies with larger cash balances but serious about saving money — particularly relevant in this post-Covid recessionary market," said DCM's Kyle Lui.
Read more: A startup that's raised $25 million from Keith Rabois and Coatue is going up against $2.6 billion Brex and pitching itself as the Honey of corporate cards
Cited by: Financial Venture Studio (investor)
Total raised: $9.5 million
What it does: This startup automates accounting for small and midsize businesses. Roger can handle all bills, invoices and expenses, speeding up the time it takes to manage accounts.
Why it's hot in 2020: "The impact of COVID-19 on the workplace has only accelerated the need for firms to digitize the accounts payable process, and we expect the company's strong early growth to continue to accelerate in the coming years," said Ryan Falvey, managing partner of Financial Venture Studio.
Cited by: Bessemer Venture Partners
Total raised: $15 million
What it does: The San Francisco-based startup stops synthetic fraud, or the use of fake identities to defraud financial firms. SentiLink's technology is able to suss out fake profiles and applications through the analysis of statistical anomalies.
Why it's hot in 2020: "SentiLink has a really strong, experienced team and is solving a very fast-growing problem in the market with a unique platform and developing data asset," Bessemer Venture Partners' Birnbaum said.
Cited by: Point72 Ventures
Total raised: $1.8 million
What it does: Stratyfy aims to help lenders avoid unfair bias when viewing an applicant. The New York-based startup uses machine learning to help empower analysts with a model that is explainable.
Why it's hot in 2020: "Outdated credit risk assessment models lead financial institutions to reject too many good applicants and introduce unintended bias that results in reputational damage and lost revenue. Stratyfy's industry-agnostic decisioning engine enables analysts to better understand decisioning and detect bias, leading to fairer lending to more people." Point72 Ventures' Shriner said.
Cited by: Bain Capital Ventures
Total raised: Declined to disclose
What it does: Trellis expedites the process of getting the right insurance coverage. Customers are able to share private information to make sure they are able to get the most personalized coverage.
Why it's hot in 2020: "Through modern software and APIs, Trellis makes it faster and easier for consumers to get the best value offering. The offering enables users to share their private insurance information, which in turn allows insurers to replace the cumbersome, complex journey of finding the right insurance, with a personalized, easy experience." Bain Capital Ventures' Harris said.
Cited by: Activant Capital and Centana Growth Partners
Total raised: $158.2 million
What it does: Unqork is a no-code platform for legacy financial institutions like banks and insurance companies to build software.
Why it's hot in 2020: "We've seen first-hand with Truework the massive opportunities for modern infrastructure not just at large banks but also the long tail of credit unions and community banks. Similar to the RPA revolution we've seen over the past few years with companies like UI Path, we see a similar opportunity for UnQork," Steve Sarracino, founder and partner at Activant Capital, said.
"Unqork is led by senior management with a depth of knowledge for the financial services and enterprise software space. Its no-code platform has been rolled out at major financial services institutions and governments, enabling quick response to customer onboarding and COVID-19, among other applications," said Ben Cukier, cofounder and partner at Centana Growth Partners.
Cited by: Sequoia Capital (investor)
Total raised: $18 million
What it does: Vise uses artificial intelligence to help independent financial advisors offer more personalized portfolios to their customers. As a result, advisors can focus on managing clients and building their business.
Why it's hot in 2020: "Vise is rethinking decades of institutional wisdom and disrupting the wealth management industry, one of the biggest markets on Earth. With the compelling tailwinds of a push for more personalization from consumers, advisors seeking advanced technology and the industry moving toward zero-commission trades, Vise is in a prime position to be the central nervous system of the wealth management industry," said Shaun Maguire, partner at Sequoia Capital.
Read more: Sequoia Capital is betting zero commissions will transform wealth management — and it's placing a big bet on an AI-based stock-picking startup for financial advisers
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